Bullish Divergence Strategy (price action only)

* The above chart is a chart of what a TM client sent us that uses TVOL even though we ourselves do not use TVOL.

Trade Analysis

The market had no real direction for about 6mins out of the gate @ 0930am est.

However, the Consumer Sentiment economic report @ 0945am est stirred things up a little.

I initially was looking for a price action only bearish divergence signal but no trade setup appeared. Suddenly, an unexpected price action only bullish divergence trade setup appeared and a trade position was initiated without hesitation.

Long Entry @ 1110.75

All profit targets were easily mapped out via the Profit Target Management as explained on Page. 25

Profit Target 1: Exited 1/3 @ 1112.50 at 0954am est. Yet, missed the target of 1112.75 after ES tested the 1113.00 price area.

Profit Target 2: Exited another 1/3 @ 1114.25 at 0955am est. This was a very good exit considering the fact that the candlestick line had not completed itself.

Why did we exited prior to the candlestick completion?

The volume rise suddenly lost its momentum (pace). Simply, the buyers were drying up fast and profit taking was around the corner along with it being (at the time of the exit) another wide range body candlestick.

Profit Target 3: Not reached and exited remainder 1/3  @ 1111.00 at 1026am est via trailing stop being hit at 1 tick better than breakeven.

Trade Management Error: A bearish wide range body candlestick appeared prior to the trailing stop being hit. I should have exited the remainder at that particular price @ 1112.50

To fear volatility is to fear profits. 

Initial Stop in Jeopardy: No

Realtime Posted Trade on CD: 031204NihabaAshiFT.gif and 031204NihabaAshiFT1.gif

Trade Duration: 35mins 

9 ES contracts trade: +16.50 points or about $825 profit

Overall Trade Performance:

Trade Strategy Signal and Trade Management Rules: Page. 25

intradaystrategies@yahoo.com

Page. 145

(Manual Excerpt from Trading Manual)